Minimum Standards for Commercial Aeronautic Activities

Oklahoma Certified Airport Professional (OCAP) Development Program

Paul Priegel, A.A.E.

What Are Minimum Standards

• The FAA highly recommends implementing and using Minimum Standards as a way to minimize potential violations of Federal obligations at obligated airports.
• Specifically
• Airport and Facilities must be available for public use as an airport
• Terms imposed must be reasonable and applied without unjust discrimination
• Stems from grant assurances and similar property conveyance obligations

Are They or Aren’t They

• Minimum Standards are OPTIONAL
• FAA Only provides guidance on developing standards
• Not intended to address non-aeronautical entities
• Are NOT Rules and Regulations
• FAA does NOT approve Minimum Standards but they will review at a regional/district level upon request

Why all the hassle?

• Federally obligated airports agree to make available the opportunity to engage in commercial aeronautical activities by persons, firms, or corporations that meet reasonable minimum standards established by the airport sponsor
• Ensure safe, efficient and adequate level of operation and services are offered to the public
• Once implemented, Minimum Standards should be applied uniformly and objectively to all similarly situated on-airport aeronautic service providers.

(AC 150/5190-7)

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Objectives

• Protect airport users from unlicensed and unauthorized products/services
• Maintain and enhance the availability of adequate services for all airport users
• Promote the orderly development of airport land
• Ensure efficiency of operations
• Promote safety in all airport activities

Authority to Establish Minimum Standards

• Grant Assurance 22 Economic Nondiscrimination provides the sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport.
• The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public

Developing Minimum Standards

• The most critical consideration is the particular nature of the aeronautical activity and operating environment at the airport
• Fill-in-the-blank or copy-and-paste Standards are not always the most effective since every airport is different
• Although MS can be modified, continuous changes are discouraged. Changes should be posted and it is recommended that MS be published periodically
• Periodic reviews are helpful to ensure MS are reasonable and applicable.
• Involving users in the process can be beneficial and help avoid conflict/resistance to change

Factors to Consider

• What type of airport?
• What type of aeronautical activities will be conducted on the airport?
• How much space will be required for each type of activity?
• What type of documentation will business applicants be required to present as evidence of financial stability and good credit?
• To what extent will each activity be required to demonstrate compliance with sanitation, health and safety codes?
• What requirements will be imposed regarding minimum insurance coverage and indemnity provisions?
• Is each standard relevant to the activity for which it is to be applied?

New vs. Existing Aeronautic Service Providers

• Develop Minimum Standards for new aeronautical business ventures it desires to attract to the airport
• MS can be modified to reflect airport’s experience and to be watchful of new opportunities
• MS should be updated to reflect current conditions and not rest in the past
• New MS can be developed to better fit a business venture as long as it is NOT applying unreasonable standards or creating a situation that will unjustly discriminate against other similarly situated service providers

Specialized Aviation Service Operations (SASO)

• AKA Single Service Providers or Special FBOs

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• All MS provisions may not apply but, of those required, should be equally applied
• Independent Operators: Should have a licensing/permitting process in place that provides level of regulation and compensation satisfactory to the airport
• Annual fees/percentage of gross receipts are acceptable ways of monitoring this activity

Through-the Fence Operator

• Agreement that permits access to the public landing area by independent operators, offering an aeronautical activity or to owners of aircraft based on land adjacent to, but not part of, airport property.
• Could undermine MS unless carefully protected through access agreements
• No obligation to permit Through-The-Fence and FAA does not typically support access to the airport by aircraft stored off-property
• Proposed new agreements should be reported to the FAA Regional Airport Division to ensure consistent with Federal Obligations and it is also incorporated with the Airport Layout Plan

Through-The-Fence Continued

• Any T-T-F agreement should be subject to a written agreement that specifies the following:
• Specific Rights of Access
• Payment Provisions (parity to similarly situated on-airport)
• Expiration Date
• Default/Termination Provisions
• Insurance/Indemnity Provisions
• Clear statement of subordination to Grant Assurances and Federal Property Conveyance obligations
• Should prohibit assignment/sale of agreement

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Self-Fueling and Other Self-Service Activities

• Self-fueling by owner/operator of their own aircraft using their own employees/equipment is NOT considered commercial activity

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• Cannot be contracted out
• Fuel obtained by owner from source of their preference
• Airport can still charge flowage fee
• Airport can regulate storage location/methods and inspect
• Is not the same as using a “self-service” fueling pump by the airport/FBO
• Other “self-services” include washing, changing oil, cleaning, repairing, maintaining (as permitted by Title 14 CFR Part 43)

Fuel Sales

• Most airports require fuel sales to be part of a full-service FBO rather than a SASO
• Careful consideration must be given to ensure safe and environmentally sound operations.
• Where will fuel tanks be installed and how will they be accessed/operated?
• What fuel capacity/types/volumes will be required to meet the needs of the airport?
• Insurance/Indemnity Requirements?
• What training/personnel/qualification standards will be required to maintain operations?

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Fixed Based Operators

• Aviation Fuel/Lubricants
• Ground Service/Support and Amenities
• Aircraft Maintenance
• Aircraft Storage/Parking
• Towing/Removal
• Oxygen/Nitrogen Service
• Lavatory Service
• Potable Water
• Ground Power
• Baggage Handling
• Concierge Service
• Courtesy/Ground Transport
• Aircraft Catering
• Aircraft Cleaning/Washing

• Generally, Full-Service FBO’s should be required to do the following services OR contract such services out

Flight Training Service Providers

• What type of flight training will they provide?
• Minimum amount of classroom space that must be obtained?
• Type of aircraft? Storage and Maintenance of Aircraft?
• Full or Part Time Training?
• Other facility requirements? (restrooms, briefing areas, etc.)

Aircraft Engine/Accessory Repair & Maintenance

• What qualifications are required for repair station employees?
• What ratings must the station hold?
• What type of services will the station offer?
• Space/Facility requirements? (repair, storage, lighting, ventilation)

Skydiving and Ultralight Vehicles

• Any restriction, limitation or ban on skydiving on the airport must be based on the grant assurance allowing sponsor to prohibit/limit activity for safe operation of the airport
• Will activity present safety hazard to normal operations
• Can activity be safely accommodated at the airport?
• What are reasonable fees jumpers/organization can pay for the use of the airport property
• Has ATC been briefed on activity and had opportunity to voice concerns?
• Will it impact instrument approaches or other aircraft activity?

Common Skydiving Concerns

Airport/Sponsor

• Access to AOA
• Movement Area
• Handling Spectators
• Perceived Increased Liability
• Scaring Away Other Users
• Noise
• No Control Tower
• Aircraft Landing/Taking Off Contrary to Traffic Patterns

Community

• Noise
• Improper Behavior
• Off-Airport Landings
• Public Safety
• Trespassing on Private Property
• Lowering Property Values
• Environmental Disturbances

A Note About “Safe Operations”

• Grant Assurance #22 Economic Discrimination

“Make the airport available for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities unless such action is necessary for the safe operation of the airport”

• Skydiving operations are commonly scrutinized and denied by airports for “safety” concerns, resulting in notable Part 13 and 16 complaints
• Longmont, CO (Citizens for Quiet Skies 2015)
• Airport cannot limit operations to decrease noise levels but was able to limit based on activity of airport
• State of Hawaii (Docket No. 16-12-04b-2014)
• Airport delay in implementing Rules and Regulations, preventing the skydiving operations from access to the airport, violated GA#22
• Airport cannot abdicate their responsibility for federal obligations while waiting for proposed or future federal statutes, regulations or guidance
• Airport cannot prohibit operations because they are a Part 139 airport or are attempting to gain certification as such; Furthermore, having a skydiving operations will not necessarily jeopardize your Part 139 Certification .
• Airport cannot prohibit access based on membership (or lack thereof) in an advocacy group
• Santa Clara County, California (Docket No. 16-11-06-2013c)
• County’s liability concerns did not justify banning skydiving operations
• Studies confirmed skydiving operations can safely co-exist with IFR/VFR traffic in the airspace

Other Minimum Standard Add-Ins

• Hours of Operation
• Facility Space Requirements/Conditions/Amenities
• Lease/Agreement Requirements
• Training/Qualifications/Number of Employees
• Customer Service Standards
• Environmental Compliance
• Signage
• Safety
• Insurance Requirements

What Minimum Standards Don’t Cover

• Items typically found in a lease
• Rules and Regulations
• AOA Driving
• Aircraft Airworthiness/Registration
• Self-Fueling Practices
• Storage/Hangar Use
• Disabled/Wrecked Aircraft Removal (although can be a requirement of an FBO)
• Security/Safety Protocols
• Non-Aeronautical Activities
• Restaurants/Retail Requirements
• Rental Cars/Non-Aero Service Providers

Final Thoughts

• Minimum Standards are timeless but do need updated
• If it grants Exclusive Rights, it’s not alright
• Minimum Standards should be looked at as a positive: quality of service, fair competition and best service available
• Build for what you want/need not necessarily for what you have
• Although not wise to copy and paste from another airport, foundational excellence found in others can give a great roadmap for developing your own.
• Don’t confuse Minimum Standards with Rules and Regulations

Reference Material

• FAA AC 150/5190-7 Minimum Standards for Commercial Aeronautical Activities
• FAA Order 5190-6B, Chapter 10: Airport Compliance Manual, Chapter 10 Reasonable Commercial Minimum Standards
• National Air Transportation Association Airport Sponsor Guide to Minimum Standards & Airport Rules and Regulations